Building Your Packaged OfferOctober 2016

Noga Ronen

AGENDA

Why build packaged offers?

What are packaged offers?

Industry trends

LoB trends

DifferentiateSpecialize

Offer unique IP

Fewer competitors

Recurring revenue & high margins

Why build a Packaged Offer?

AVERAGE GROSS MARGINS

15%

35%

45%

70%

RESALE PROJECT SERVICES MANAGED SERVICES PACKAGED IP

Not all revenue streams are created equal

Why build a Packaged Offer?

Create stickiness

to increase

Customer Lifetime

Value (CLV) Upsell

The IP staircase

Labeled

bundles

Turnkey

functional

infrastructurePackaged

extensions

Full vertical

solutions

POTENTIAL ISV PARTNERING

COMPLEXITY/COST

DIF

FER

EN

TIA

TIO

N/V

ALU

E

Office 365

The IP staircase Labeled bundles|

The IP staircase Packaged extensions|

The IP staircase Turnkey functional infrastructure|

The IP staircase Full-on vertical solutions|

The IP staircase Full-on vertical solutions|

FranciseFirstThe Platform includes all of the technology and support to operate a world-class franchise

MICROSOFT CLOUD SERVICES

Exchange Online (EO)

SharePoint Online (SPO)

Skype for Business

Yammer

PARTNER SERVICES

- Portal: branded territory portal system that replaces branch servers and provides a single point of truth for procedures and policies

- Franchise code compliant cradle-to-grave relationship management of the franchisor and franchisee;

- Brand sentiment management and real-time performance management and reporting;

- Cloud PBX and online video meetings and training; mobile device management and application packaging;

- Intellectual property protection systems;

- Workforce automation and digital forms.

The IP staircase

Labeled

bundles

Turnkey

functional

infrastructurePackaged

extensions

Full vertical

solutions

POTENTIAL ISV PARTNERING

COMPLEXITY/COST

DIF

FER

EN

TIA

TIO

N/V

ALU

E

Office 365

Differentiate with

industry focus

Small and Mid market spend

$31,338

$53,242

$165,478

$34,560 $35,586

$54,737

$136,902

$189,767

$167,783

$74,876

Financial Services Professional Services Manufacturing Retail HealthINDUSTRY

CUSTOMER COUNT

CAGR

1,500

5%

36,298

7%

3,101

5%

118,912

7%

15,797

8%

134,586

7%

4,945

5%

299,707

5%

2,058

5%

51,997

6%

Mid market definition:100-999 employees

Small market definition: 1-99 employees

$ in millions

How to get started

Identify

industry

Build offering:

master the

specialization

Build &

execute

GTM

Collect

evidence &

find more

opportunities

Tactics for targeting industry

TOP FIVE TACTICS FOR TARGETING INDUSTRIES

Source: IDC Survey, n=242, 2016

We participate in industry or vertical events and conferences

We partner with other channel partners to enhance our total solution

Our sales force is specialized by industry or vertical

We optimize our website to attract customers from within an industry or vertical and invest

in SEO/paid search as a part of the strategy

We have hired subject matter experts from within the industry or vertical

Assess the market

Identify white space opportunities in your geography

FIND OUT

• Number of customers

• AVG spend

• Growth per industry

https://microsoft.sharepoint.com/tea

ms/BIAnalytics/partners/Pages/SMBIn

dustryAnalysis.aspx?fsid=1134641

To access tool link please

contact your P-seller or PSE

Partner Benchmarking

Find out on the performance of top partner

LEARN ON THEIR:

• Products sales

• Revenue

• Growth

• Upsell

Partner Performance

What was your performance in different industries?

FIND OUT MORE on your sales, upsells & growth

Benchmark yourself to the industry potential and top performing partners and Identify ‘low hanging fruit’ opportunities

Differentiate

with LoB

Line of business decision makers are critical to your success

Source: IDC North American Line of Business Technology Survey 2015, n=1548

of technology projects

funded by LoB61%of technology projects influenced by LoB81%

2015 LoB SMB (10-499) spend WW

AMI-partners, Sep 16, SMB (10-499) Line of Business Software TAM

North America

APAC

EEMEA

Latin America

Western Europe

35%

24%

8%

7%

26%

$34B

2015 LoB SMB (10-499) spend WW

$5,616

$7,633

$0

$10,000

$20,000

$30,000

$40,000

$50,000

In $

Mil

lio

ns

AMI-Partners, Sep 16, SMB (10-499) Line of Business Software TAM

2015

Payroll

HR

ERP

CRM

BI

Acct./Fin.

All other LoB

2015 LoB SMB (10-499) spend WW

$5,616

$11,090$4,465

$7,176

$7,633

$10,576

$0

$10,000

$20,000

$30,000

$40,000

$50,000

In $

Mil

lio

ns

AMI-Partners, Sep 16, SMB (10-499) Line of Business Software TAM

CAGR

2015 2020

Payroll 9%

HR 6%

ERP 7%

CRM 10%

BI 15%

Acct./Fin. 4%

All other LoB 4%

BI, CRM & ERP- fast growing LoB Cloud On-Prem

AMI-Partners, Sep 16, SMB (10-499) Line of Business Software TAM

39%

62%

61%

38%

$5.6B $11.1B

2015 2020

BI

59%72%

41%28%

$4.5B $7.2B

2015 2020

CRM

13%23%

87%77%

$7.6B $10.6B

2015 2020

ERP

BI CRM ERP Other LoB

LoB cloud apps for 10-99 employees drives +60% of spend

Cloud Spend

2015$2.2B $2.6B $1B $1.8B

10 to 19 16% 21% 14% 15.97%

20 to 49 32% 26% 29% 25.08%

50 to 99 28% 16% 26% 20.90%

100 to 249 16% 20% 18% 20.57%

250 to 499 8% 16% 14% 17.48%

AMI-Partners, Sep 16, SMB (10-499) Line of Business Software TAM

TOP LoB by vertical- Top 6 drive +60%

Banking/financial

Professional services

Retail

Discrete manufacturing

Healthcare

Process manufacturing

ALL OTHERAgriculture/mining

ConstructionHospitality

Information & mediaInsurance

Life scienceOther services

PharmaceuticalsReal estate

TelecommunicationsTransportation

UtilityWholesale

8%

19%

12%

15%

18%

8%

17%

TOP LoB

verticals

LoB Cloud apps

WW proportion of LoB app spending by region: BI and ERP drive ~ 40%

15%

9%

25%

7%4%

3%

37%

Latin

America

16%

11%

26%5%

4%4%

33%

Western

Europe

17%

10%

19%

5%5%4%

40%Asia

Pacific

19%

7%

10%

5%5%4%

51% EEMEA

BI

CRM

ERP

16%

18%

23%8%

4%

4%

27%

North

America

OTHER

% of All Businesses

Solution Bundling BI

Industry Solution Bundling BI

PURPOSE

To provide insight into applications SMB customers commonly use together so you can build industry and geo-specific solution bundles

WHAT’S INCLUDED

• Three products of interest (POIs)—Productivity, IAAS/PAAS, CRM—and the top 3 – 5 applications most commonly used with them.

• Geographies

• Industries – Financial, manufacturing, retail, professional services, healthcareand government.

Provided by iDatalabs 2016

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